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Friday, September 19, 2008

Conforce International (CFRI)

Investor shows up at the front door of Conforce. Warren Buffett did this at GEICO when he was a kid.

UPDATE Jan 29, 2008:
It's great to see that Conforce finally got an actual order for $1 million, possibly extending to $4 million. That's huge.

Wednesday, September 10, 2008

uranium miner stock prices drop

Yesterday the price of just about every uranium stock dropped like a rock. Lots and lots of double digit percentages. The only relevant news would be the potential Western Australia win by the Liberal (which in the US would be considered conservative) party which prefers to lift the ban on uranium mining. I don't see this impacting the short term, obviously, and I don't think has that much impact on the long term, especially given how low the market caps of the solid uranium miners are at this point. Long term demand is increasing fast and shows every sign of even accelerating beyond that, over time. A lot of babies are being tossed out with the bathwater.

As much as I don't agree with charting people, they do keep good records of what happened. Merv's Daily Commentary has the gory details.
The Merv’s Daily Uranium Index closed lower by 19.24 points or 9.85%. The AVERAGE decline of an Index component stock was 10.54%. There were a few winners, 3 of them. Losers were running wild and numbered 44 for the most that I can remember since starting this commentary. Three stocks went nowhere but in this market one might call them winners. The best winner of the three was Uranium Power with a gain of 3.0% while the worst of the losers was Tournigan Energy with a loss of 36.4%, that’s in one day. Another not so nice statistic is the fact that 50% of the Index component stocks were double digit losers.
I've been buying more Strathmore Minerals lately and I expect to buy more if the price continues down.

I've been forwarding articles about the industry and Strathmore in particular to someone understandably nervous about the price of the stock. Basically, if you go back and look, everything that has played out in the industry and with Strathmore in particular has been exactly as Strathmore has predicted. Nothing has gone otherwise. A year ago, they were saying that nearly all of these uranium companies which sprung up like mushrooms (I don't think they used that term) are going to disappear. I think the market sees this now and it's abandoning all uranium stocks.

Meanwhile the price of uranium has been remarkably stable in the mid sixties price range ($80 long term). Having a higher long term price demonstrates, as one uranium insider said somewhere, that utilities are willing to pay more for long term supply because they believe prices will/may be going up. That's a 24% premium.

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